Inside downfall of iconic Sydney theme park
It was a Sydney icon that vanished abruptly just years after its grand opening. Now, ex-employees have revealed where it all went wrong for Sega World.
It was meant to be Sydney’s answer to Disneyland – a neon-lit, multi-level temple to gaming glory that promised to bring the future of entertainment Down Under in the late 90s.
But by 2000, Sega World had pulled the plug.
Now, more than two decades on, former employees have reflected on the ambitious indoor theme park that opened with a bang but quietly fizzled out just a few years later.
Sega World Sydney was a short-lived icon of 90s optimism, housed inside Darling Harbour’s Pavilion building with a rumoured price tag of over $80 million.
Its colourful corridors, virtual reality (VR) simulators, parades and under-18 dance parties were a far cry from Luna Park’s rickety charm.
Instead, Sega was supposed to be a cutting-edge “high-tech adventure playground” backed by Sega’s global gaming empire.
Featuring nine rides and simulators, a bustling food court, live entertainment and over 200 arcade games, it seemed that Sega World had something for everyone – big or small.
It was officially launched on March 18 in 1997 by Michael Knight, the Minister at the time responsible for the Sydney Olympic Games and the bustling Darling Harbour precinct.
“They were anticipating huge crowds coming to Sydney and Sega World for the Olympics,” former staff member Andrew said in an interview with Sega fanatic DrScottnik.
“They didn’t get they wanted and they weren’t making any money,” he added.
A big bet that didn’t pay off
The park was a joint venture between Japanese gaming giant Sega and Sydney Harbour casino developer Jacfun.
They poured millions into the project, banking on Olympic tourism and the growing popularity of video games.
Instead, ticket sales dwindled despite desperate initiatives such as free entry and free rides.
“We tried various schemes to make people come including free entry, buy passes as you go or buy a ticket at the gate which covered everything. We also tried making games completely free,” said ex-staffer Peter.
“But I guess ultimately, the interest wasn’t there.”
By early 2000 – just months after the Olympics – Sega had quietly pulled out of the operation, leaving the theme park to gather dust.
Not even an auction to sell off the contents of the park in 2001 was able to draw a crowd, with a few hundred-odd punters gathering to pick up arcade games for bargain prices.
Jacfun managed to keep the lights on at the site for another three years but by 2003, the dream was officially over.
Today, there’s little sign that Sega World ever existed at all.
Gone, but not forgotten
“I can vividly remember going into the control room and saying, ‘Ladies and Gentlemen, boys and girls, Sega world is closed for this evening,’ for the very last time,” former manager Jonathon recalled.
For many others, Sega World remains a brightly-coloured memory of their childhood.
“My favourite place was shut down for reasons as a kid for reasons that I just couldn’t understand,” said ex-visitor Nick.
“It brought us all so much joy and memories. I always remember this as the beginning of the end for that area of the city. For me, the city has never been the same after that,” he said.
An online fandom of Sega Sydney lovers still exists, with X accounts dedicated to keeping the memory alive.
On eBay, you can even score the iconic Sonic swipe access pass for $277.
Many other nostalgic 90s babies weighed in on the clip, sharing their fond memories of the park.
“I went there on my first big Sydney trip. Monorail, aquarium, National Museum and Sega world! Was absolutely ecstatic!,” said one.
“What a nostalgia trip, I think I almost bankrupt my parents by begging to be taken there every school holidays back in the day,” said another.
“I went there as a kid and made friends with another kid after checking out the 3D/4D VR simulation. A few months later he ended up moving away. Fast forward 25 years, he was the best man at my wedding – I’ll always have a huge soft spot for Sega World because of that,” shared a third.